Green-leaning Digbee reveals keen ‘BB’ for Ionic’s ESG.

Ionic Rare Earths’ environment, social and governance practices have been given the stamp of approval by leading independent assessment platform Digbee ESG^TM.

The award of an overall ‘BB’ rating for both corporate activities and the Makuutu Rare Earths Project from the notoriously (and ruthlessly) independent, green-leaning platform demonstrates the company’s continued strong commitment to ESG integration, reporting transparency and continuous improvement.

And while the BB grade provides Ionic Rare Earths (ASX:IXR) with a path for operational and reporting improvements to be addressed across all ESG pillars – given that there are several bands which score above BB, it is still within the top rating bands for a certification which is endorsed by leading global financiers.

Managing Director Tim Harrison said that with the company’s baseline credentials now identified by Digbee ESG’s experts, it could now incorporate all their recommendations to improve its ESG programs, which are a key focus in its development plans.

“The Board and staff of IonicRE and subsidiary company Rwenzori Rare Metals are pleased with our maiden overall ESG award of “BB” and acknowledge that this range provides some near-term opportunities for improvement,” he added.

“As the improvements are embedded in our current operations, we look forward to preparing our next submission and demonstrating improvement as we advance Makuutu towards development and operations.”

Digbee founder and Chief Executive Officer Jamie Strauss added that the commitment by Ionic’s management to embrace transparency and build a sustainable project was emphasised time and again during the company’s submission.

“Rare earth metals are a critical material required for the global energy transition and the Makuutu project is well located to take advantage of a number of sustainable benefits, such as hydropower,” Strauss noted.

“A number of important areas of remediation have been identified but I have no doubt the commitment of this management to address these over subsequent periods will be proven.”

Taking steps for improvement

Ionic is already taking steps to improve its ESG with more local Community Liaison Officers (CLOs) trained to inform and execute its resettlement action plan as well as improve communication with stakeholders.

Technology mechanisms are also being implemented to ensure clarity of reporting and communication to all stakeholders while the environmental and social threats associated with heap leaching will be clearly identified in its upcoming Feasibility Study.

It is also in the process of establishing anonymous channels for all stakeholders to speak up and advise of grievances – creating a culture of support for staff and openness for community members.

Additionally, the company will seek to communicate its overarching ESG strategy, communications, reporting and continuous improvement program with the findings from the Digbee providing insights and measures to improve upon.

“The circular economy of rare earths will become increasingly more important over years to come. Demonstrating sustainable business practices and a commitment to ESG transparency and reporting of our activities will create value for our stakeholders and positively impact the social development programs in Uganda,” Harrison added.

“In the coming months we look forward to releasing our ESG strategy and reporting aspirations as we look to embed the improvements outlined in our maiden Digbee report and embark on our Communication of Progress to the United Nations Global Compact.”

This article was developed in collaboration with Ionic Rare Earths, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.